Three Types Of Motor Insurance Coverage Explained

By Author: Alisdair Cosgrove
Total Articles: 184
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Trying to decide which type of car insurance coverage to buy is something everyone who has a vehicle on the road will go through at some time.Unless you take plenty of time to carefully think it through, the hassle of making such a decision can be quite a task.The right decision about car insurance can be helped by gaining some clarification of the situation from doing solid research and getting some friendly advice from an insurance agent.

Knowing what types of auto insurance there is available and knowing the difference in the types of coverage each one offers will make your decision on auto insurance easier.The three basic types of auto insurance coverage offered by the majority of car insurance providers are collision, liability, and comprehensive coverage.

There is no shortage of auto insurance companies out there vying for your attention and competing to secure your patronage because car insurance is a competitive market.You need to be knowledgeable on the type of auto insurance coverage you need before patronizing this market.Some individual auto insurance providers will possibly offer additional services ...
... to clients who choose one of the basic types of coverage, however these services may not be necessary elements to each type of coverage.

Obviously, one of the distinctions between each form of auto insurance coverage has to do with price and this may be a decisive factor for many motorists because they do not want to spend that much on their car insurance.The downside to this approach is that you may have to sacrifice the quality or degree of your coverage to get the lower price.

Your preference of coverage type and degree may be easier to determine if you examine each different type of coverage very closely.

LIABILITY - If you have liability insurance, you have the bare minimum amount of coverage you can have and still drive legally in most states.The purpose of liability coverage is to protect the driver from legal liability if he or she is responsible for an accident or held responsible even if they did not cause it.The damages, lost wages, and medical expenses of the injured parties are to be covered by the liability insurance.

With no regard to who was at fault, collision coverage provides compensation to a driver whose vehicle was damaged in an accident.Property damage as well as damage to the vehicle caused by a collision with other objects is covered by collision coverage.If your present vehicle is totaled by the auto insurance company, the funds to buy or put a down payment on another vehicle can be yours through your collision insurance coverage which has repair and replacement provisions.

If the insured vehicle is damaged by fire, a natural disaster or if it is stolen the comprehensive coverage on your insurance policy gives you the means to replace the vehicle.

Taken separately or together, each of these coverage levels provides various and sometimes overlapping areas of coverage for the motorists, the vehicles, and separate property.
Alisdair Cosgrove has been writing car insurance articles for several years and can find more of his work at the UK site TheMoneyStop.co.uk, offering cheap car insurance quotes for UK residents and also a great selection of articles including 'Why is material fact so important and also 'car insurance by experience'.